Business Communication: Functions, Examples & Benefits


Business communication is all information sharing processes carried out by people inside and outside for the purposes of the business sector.

Its role is very important for the smooth running of a business. Because, miscommunication in business can be detrimental not only financially when profits decrease but also mentally and relationships when an employee resigns.

Therefore, it is important for all components of a business, be it employees, managers and company officials, to understand the tools and processes needed to communicate business effectively. 

Then, what exactly is business communication, its purpose, types, elements and examples? Let's read this article!

Understanding Business Communication 

According to Nextiva, business communication is the process of sharing knowledge between people from inside and outside a company. 

A business communication will be effective if the interaction between employees and management can achieve organizational goals. All activities in the company depend on this ability. 

Referring to the definition of Purwanto (2003), the notion of business communication is an activity that involves sending and receiving messages between two individuals, small groups, one or more environments aimed at influencing behavior within an organization.

Elements of Business Communication 

As an important tool to convey information, the occurrence of business communication is not laden with the following elements:

  • Communicator, as a message sender
  • Messages, information or knowledge to convey
  • Media, tools to convey messages 
  • Communicate, as the recipient of the message
  • Impact, the effect of the message that has occurred

Types of Business Communication 

The existence of business communication can be divided into several types. This is important because the nature and involvement of different stakeholders requires specific information delivery techniques. The following are the types of business communication:

1. External Communication 

This type of external business communication includes any exchange of information from individuals within the organization with outside parties. 

In the external type, examples of business communication are to customers, vendors, prospects or partners. Therefore, the nature of the following correspondence is more irregular. 

2. Lateral Internal Communication 

Furthermore, there is lateral internal business communication which refers to communication between two equal status. For example, a conversation between two employees via e-mail, message or chat. 

Regularity to the internal lateral type in business communication is easier to monitor. 

Because, in the daily life of a business, there must be an exchange of information between people in one department or another. 

The better this communication network, the better the value of productivity and employee involvement in the company. 

3. Upward Internal Communication 

This type of internal business communication can not only occur with colleagues in a group or position.

Upward internal correspondence is a term for the exchange of information from employees with their superiors. 

This can mean communication from ordinary employees with company managers and directors. 

Company leaders need knowledge of the vital things happen within the company, this is where the benefits of internal business communication upwards.

Forms, reports, feedback or surveys are options for subordinates to convey this information to superiors.

4. Downward Internal Communication

Internal communication can also be monitored from the exchange of information from the superiors of a company to their subordinates. 

This is known as downward internal communication. This type of business communication can include memos, letters or verbal orders. 

To establish professional and clear communication, the company's superiors must use solid and straightforward language. 

In the internal type down, an example of a business communication is a memo for a new procedural regulation regarding employee safety. 

Business Communication Purpose

In general, the purpose of business communication is different. This is also in tune with the impact that information providers want to achieve. Here are some of the purposes of business communication.

1. Giving Knowledge 

Knowledge in business communication is all information needed for an activity of an individual or group.

One of the goals of business communication is to convey knowledge and then use it as a further step in the activity.

2. Persuasion 

Not only providing knowledge, another purpose of business communication is persuasion. In the business world, the factors of price and quality are common things to be concerned about. 

Therefore, the ability to negotiate and persuasion to get the desired price and quality requires effective business communication, especially in the external type. 

3. Collaborate  

The next purpose of business is to collaborate. Collaboration is a term for cooperation between individuals and group to achieve mutual desires. 

The presence of business communication makes collaboration that is commonly found in everyday life in an organization easier. 

Business Communication Function

This process has not only multiple purposes but also multiple functions. Below are the functions of business communication.

1. Integrative

The first business communication function is integrative. The unity and integration of a company as seen from the good interaction between employees cannot escape the optimal role of business communication in the organization. 

2. Informative  

In addition, the business communication function is informative. Submission of information can be used by employees to carry out a business activity effectively and efficiently.

Not only that, the informative function of business communication helps to maintain the safety and well-being of employees.

This is because knowledge of work safety procedures is one that can be conveyed through this process. 

3. Persuasive 

Another function of business communication is persuasive. Employees can use this process to convey ideas or to convince recipients of information that it is aligned with the common goals of the organization. 

4. Regulatory 

The regulatory business communication function is to regulate the travel and management of the company to keep it going well. This may include the delivery of both written and unwritten orders. 

Benefits of Business Communication for Business Continuity

The nature and existence of business communication is crucial to the journey of a company. This is because if implemented properly, many benefits will be obtained by the organization. Some of the benefits of business communication are as follows.

1. Reduce unnecessary communication  

Usually, e-mail is used by employees of a company to convey information in the business world such as giving assignments, submitting feedback and scheduling meetings.

In fact, data from the Radicati Group states employees spend 25 percent of their day checking e-mail.

Sometimes, employees receive unimportant information or get too many messages via e-mail.

The benefit of business communication is its ability to reduce problems such as e-mail overload. 

2. Preventing the existence of silos

A silo in business communication is when a department or group assigns tasks based on the status of the team. 

What happens is that resources and ideas from other departments are ignored and not accepted.

With the application of optimal business communication, problem solving that often involves several departments at once can take place collaboratively. 

3. Increase employee productivity 

Performance and productivity of employees in an organization is a reflection of whether or not business communication is good.

Of course, the better the internal correspondence of a company, the higher the level of employee engagement.

Miscommunication, information overload and lack of knowledge are time-consuming challenges.

This problem can be reduced by employee initiative and company support to carry out effective business communication.

4. Support work from home effectiveness

In fact, the need for effective business communication will be more pronounced where many companies are now implementing a system where employees can work from home as a result of the pandemic. 

Difference in time zones and distances require good information coordination to keep team members constantly contributing to achieving company goals. 

5. Lowering employee turnover ratio 

The biggest benefit of business communication is employee engagement and productivity. Not only that, the impact of these benefits keeps employees loyal to the company because they feel involved in the process of achieving organizational goals. 

However, there are challenges in keeping the delivery of information relevant and respecting employees personal space. 

If not, then the rate of self-regression will increase due to the ongoing frustration, stress and irritation it has. 

6. Maintained customer loyalty

Last and not least, the benefits of business communication are internal and external to be able to maintain customer loyalty. This is because customer expectations can be managed as a result of business communication. 

For example, if an employee does not have access to important information to provide, the customer will judge that the company cannot provide the knowledge that it should be able to obtain. 

Therefore, it is important to maintain information disclosure as in optimal business communication. 

That was a brief explanation of business communication. Fulfilling promises made and managing expectations are important components of smooth communication in the business world.